ALTHOUGH downward price adjustments in the Cyprus property market are continuing, the Property Price Index issued by the Cyprus Central Bank for the second quarter of 2014 reports that these downward adjustments are slowing.
According to the Central Bank’s index, apartment prices fell by an average of 2.1% while house prices fell by an average of 1.8% over the second quarter. (This compares with a falls of 1.1% and 1.0% reported by RICS Cyprus last week).
Apartment prices
The Central Bank index reports that the largest quarterly decline in apartment prices were recorded in Famagusta, where they fell by 4.5% and Larnaca, where they fell by 3.0%.
Elsewhere apartment prices in Paphos fell by 2.8%, in Limassol they fell by 2.1% and in Nicosia (the capital) they fell 1.4%.
House prices
The largest quarterly fall in house prices was recorded in Nicosia, where they fell 2.1% and Larnaca, where they fell 1.9%.
Elsewhere house prices fell by Limassol fell by 1.9%, in Famagusta they fell by 1.3% and in Paphos they fell 0.1%.
Property contracts
The Central Bank index also reports that the total number of contracts of sale deposited at Land Registry offices during the second quarter was up 65.1% over the previous quarter.
Contracts in favour of Cypriot buyers increased by 80.6%, while those in favour of foreigners increased by 33.2%
Further reading
Central Bank House Price Index for the second quarter of 2014
Some areas and units on offer are beginning to reach the realms of a realistic level of pricing, not there yet but getting there slowly. Other areas and units still need dramatic and draconian cuts, a further cut of 70 to 80% would still leave them overpriced and as much as that sounds ridiculous to some then I’m afraid in my humble opinion it is the reality. Having paid vastly overinflated prices for any property never leaves us able to see reality and naturally we would wish to recover as much of our outlay as possible. Sadly it is these units that still remain unsold and always will unless someone comes along who wants to launder cash.